Three methods can be used to account for an equity investment subsequent to date of acquisition for internal record keeping purposes. Briefly describe each of the three methods.
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- Explains the three methods of accounting for investments that are recognized under GAAP and what conditions must be met to apply each.A typical securitisation transaction involves the pooling of assets that are then transferred to a special purpose vehicle that in turn finances the purchase through the issuance of securities backed by the pool. This process involves a number of participants. List and explain the 8 participants and also aid your explanation with a diagram the process of securitization.Which of the following are Assets, Liabilities, EquityAccounts PayableCommon StockBonds PayableFurniture and FixturesInventoryInterest PayableDividentsAdditional paid-in-capitalPatents and copyrightsShort-term investments
- Investing activities include the acquisition and disposition of assets. Provide four specific examples. Identify two exceptions.Investing activities include the acquisition and disposition of assets. Provide three specific examples. Identify two exceptions.Demonstrate how to identify and account for equity investments classified forreporting purposes as fair value through net income
- What are the Required disclosures about each major class of capital assets?Which of the following are controls that can be applied to capital assets? i - Examine and count capital assets on a regular basis ii - Place capital assets in a secure area iii - Tag assets with bar codes iv - Track individual assets in accounting records Select one: a. iv only b. iii and iv only c. all of i, ii, iii and iv d. ii, iii, and iv onlyWhich of the following should be disclosed in the Summary ofSignificant Accounting Policies?a. rent expense amount b. maturity dates of long-term debtc. methods of amortizing intangiblesd. composition of plant assets
- Prepare the worksheet for preparing a consolidated statement of financial position on the date of acquisition. You may add accounts to the worksheet that may be necessary.Which of the following is not a category of financial assets under GAM? Group of answer choices A.Held to maturity investments B.Available for sale financial assets C.Financial asset at fair value through other comprehensive income D.Loans and receivableWhat is meant by date alignment? Does it exist on the consolidated worksheet under the following methods, and if not, how is it created prior to elimination of the investment account under each of these methods? a. The simple equity method b. The sophisticated equity method c. The cost method